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2017 (10) TMI 318 - AT - Income TaxAssessment in hands of legal heirs - assessment in the hands of the vendee as well as the co-owner - capital gain - Held that:- ITAT in the earlier proceedings, had clearly considered the issue and had set aside the assessment to the file of the AO observing that the cases of the vendee Shri Sai Sree Projects and the co-owner, Smt. N. Andalamma have been set aside to the file of the AO. Consequent to this direction, the AO is required to consider the assessments in the hands of the vendee as well as the co-owner before completing the assessment in the hands of the assessee to adopt a uniform and rational approach. Further, we also find that the assessment was initially completed in the hands of Shri A. Ramulu, who has died thereafter, and all his legal heirs have to be brought on record to bring to tax his income. Though the assessee has brought to the notice of the AO that Shri A. Ramulu is survived by three sons, the AO has refused to bring them on record stating that the assessee has not filed the legal heir certificate. We cannot find fault with this approach of the AO, since the assessee has not filed the legal heir certificate even before us at this stage. But, the assessee can file such certificate even at this stage. Neither the AO nor the CIT (A) have correctly followed the earlier directions of the Income Tax Appellate Tribunal. In view of the same, we deem it fit and proper to remand the issue to the file of the AO with a direction to consider the assessee’s application for bringing all the legal heirs of Shri A. Ramulu on record and to complete the assessments in the hands of the assessee and the other legal heirs de novo after making due inquiries and also after making due inquiries with regard to assessee’s contentions that possession of the property was never handed over to the vendees and that the construction permission has been given to the other co-owners of the property, to come to a conclusion on the question as to whether there is a transfer of the property.
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